Reuters | Mar 13, 2018 14:21
By Allison Martell
HAMILTON, Ontario, March 13 (Reuters) - Sean Donnelly, Chief Executive of ArcelorMittal Dofasco MT.AS , said on Tuesday the company is not seeking Canadian government aid as the domestic steel industry faces uncertainty after U.S. President Donald Trump provided temporary relief on steel imports.
Donnelly also said the Canadian government must put resources in place to ensure that cheap steel is not diverted into Canada after Trump last week decided to impose a 25 percent tariffs on steel imports. Canada and Mexico secured a temporary reprieve, Trump has linked permanent exemption to a successful North American Free Trade Agreement deal, making the industry nervous.
Canada is the biggest supplier of steel and aluminum to the United States. But relative to bigger industries such as agriculture and auto manufacturing, the steel sector only employs 22,000 direct jobs and represented 2 percent of exports last year.
ArcelorMittal is the largest steel manufacturer in Canada, employing about 10,300 people with seven units in the country, according to the Canadian Steel Producers Association (CSPA).
"I think it's just boots on the ground, boots on the ground both at the CBSA (Canada Border Services Agency) and in Global Affairs to make sure whatever remedies are put in place and that's up to the government to come up with the remedies or tools ...that they have the resources to enforce," Donnelly told Reuters.
Donnelly was speaking as Canadian Prime Minister Justin Trudeau visited the steel city of Hamilton to reassure workers, as part of his week-long tour to defend Canadian jobs. On Monday, Trudeau called Trump to stress the need to preserve the "mutually beneficial" cross border supply chains. North American steel industry is heavily integrated, with raw materials, steel and parts crossing the U.S.-Canadian border several times before a finished product such as a vehicle or refrigerator is sold to consumers. About 65 percent of the Hamilton port's tonnage is iron ore and coal used to make steel.
Hamilton, with a population of 700,000, houses Dofasco's mill, coking and finishing operations at Stelco STLC.TO and collection of smaller operations that directly employ about 10,000 people in the city.
Written By: Reuters
Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading in financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indices, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn't bear any responsibility for any trading losses you might incur as a result of using this data.